If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real, risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in government deficits:
a. The real risk-free interest rate rises and the quantity per time period falls.
b. The real risk-free interest rate rises and the quantity per time period rises.
c. The real risk-free interest rate falls and the quantity per time period falls.
d. The real risk-free interest rate falls and the quantity per time period rises.
e. The real risk-free interest rate falls and the quantity per time period is uncertain.
.C
You might also like to view...
Quotas redistribute income from consumers to domestic producers
Indicate whether the statement is true or false
The U.S. economy of the mid 1980s through 2007 is typically referred to as ________
A) "The Great Depression" B) "The Great Inflation" C) "The Great Moderation" D) all of the above E) none of the above
Under perfect price discrimination, consumer surplus
A) is less than zero. B) is greater than zero. C) equals zero. D) is maximized.
Which of the following policy actions shifts the aggregate-demand curve?
a. an increase in the money supply b. an increase in taxes c. an increase in government spending d. All of the above are correct.